Collective bargaining and minimum wage regime in Sweden (2026): Report to the European Trade Union Institute (ETUI) in Brussels

Summary

The report "Collective bargaining and minimum wage regime in Sweden (2026)" by Anna Fransson and Anders Kjellberg, prepared for the European Trade Union Institute (ETUI), offers an in-depth analysis of Sweden's distinct approach to wage setting. This study is part of a broader ETUI project mapping the transposition process of the EU Directive on Adequate Minimum Wages across member states. The methodology implicitly involves national experts, like Fransson and Kjellberg, providing comprehensive overviews of their respective countries' minimum wage systems, collective bargaining regimes, and the challenges or alignment with the new EU Directive. The authors examine the historical and current framework of Swedish labor relations, emphasizing its self-regulatory nature. The key findings reveal that, unlike many other countries, Sweden operates without statutory minimum wages or provisions for declaring collective agreements universally valid. Instead, wage formation is largely a domain of self-regulation by the social partners – trade unions and employers' associations – with minimal governmental intervention. While some legislation indirectly concerns wage conditions, such as protection against wage discrimination, there is no direct legislation dictating how wages should be determined. The closest equivalent to minimum wages in Sweden are the "lowest wages" (lägstalöner), starting wages, or guaranteed wages stipulated within collective agreements. These agreements cover a significant portion of the workforce, with collective bargaining coverage reaching approximately 88% in 2024, including 100% in the public sector and 82% in the private sector. The report's implications suggest that the Swedish model, despite its non-statutory approach, effectively achieves the overall objectives of the European Minimum Wage Directive through its robust collective bargaining system. The framework relies on strong union representation and employer engagement, ensuring comprehensive wage protection and employment conditions through collective agreements and individual contracts. The paper also touches upon the division between blue-collar and white-collar agreements and notes that roughly 300 out of 620 sectoral collective agreements include specific minimum wage levels. The ongoing discussions regarding the transposition of the EU Directive highlight the unique position of Sweden, which maintains that its established model already provides adequate wage protection without needing a statutory minimum wage.